The Expert Committee on Climate Finance has submitted its first report on Transition Finance to the International Financial Services Centres Authority (IFSCA).
Earlier in December 2023, Prime Minister Narendra Modi, while addressing investors and market participants, in IFSC, had stated that India would require at least $10 trillion by 2070 to achieve the Net Zero Target. Financing from global sources is essential for this investment. Hence, IFSC would be made a global hub for sustainable finance. GIFT IFSC serves as an efficient channel for the necessary flow of green capital to build a low-carbon economy in India. The development of financial products such as green bonds, sustainable bonds, and sustainability-linked bonds would make the path and access easier for the entire world.
Consequently, the Expert Committee on Climate Finance was constituted by IFSCA to provide a roadmap for IFSCA to develop a climate finance ecosystem and instruments at GIFT IFSC with a special focus on transition finance as well as to provide recommendations on establishing the GIFT-IFSC as a global hub for climate financing.
The report emphasises the role of transition finance in driving investments towards hard-to-abate sectors such as steel, cement, shipping, fertilisers etc. which are crucial for economic growth of India and other developing nations. The report offers strategic recommendations to IFSCA and policymakers by exploring global best practices and regulatory landscapes, to enhance the role of GIFT-IFSC as a gateway for attracting international climate capital flows to achieve India’s ambitious goal of achieving Net Zero by 2070.
The report and the detailed recommendations of the Expert Committee can be accessed on IFSCA website at https://shorturl.at/EqhIG.
